**Policy Summary: Reissue of 7.61% Government Stock, 2030**
On July 11, 2016, the Government of India, Ministry of Finance, Department of Economic Affairs, announced the sale/reissue of the "7.61 per cent Government Stock, 2030" for an aggregate amount of Rs. 8,000 crore (nominal). The sale was conducted by the Reserve Bank of India (RBI), Mumbai Office, through a price-based auction using a multiple price auction method via the RBI's e-Kuber system. The auction took place on July 15, 2016, with non-competitive bids submitted between 10:30 a.m. and 11:30 a.m., and competitive bids between 10:30 a.m. and 12:00 noon. Up to 5% of the notified amount was allotted to eligible individuals and institutions through a non-competitive bidding facility. The stock has a fourteen-year tenure, commencing from May 09, 2016, and will be repaid at par on May 09, 2030. The payment date for successful bidders was July 18, 2016, which included accrued interest from May 09, 2016, to July 17, 2016. Interest at 7.61% per annum is payable half-yearly on November 09 and May 09. The stock was eligible for When Issued trading as per RBI guidelines. Further information can be found in General Notification F. No. 4/13/WM/2008, dated October 8, 2008. Contact person for inquiries is Prashant Goyal, Joint Secretary to the Government of India.
Key Entities Referenced
Ministry of Finance: The ministry responsible for economic and financial matters in the Government of India.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India, responsible for economic policies and programs.
7.61 per cent Government Stock, 2030: A specific government bond being reissued, maturing in 2030 and carrying an interest rate of 7.61%.
Reserve Bank of India: The central bank of India, responsible for conducting the auction and managing government securities.
Mumbai, Maharashtra: The city and state where the Reserve Bank of India office is located and the auction is conducted.
General Notification F. No. 4 13WM2008: A previously issued notification by the Government of India, providing general guidelines for government stock auctions.
Scheme for Noncompetitive Bidding Facility in the Auctions of Government Securities: A scheme that allows eligible individuals and institutions to bid for a portion of the government stock without competing on price.
Prashant Goyal: Joint Secretary to the Government of India, signatory of the notification.
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division
New Delhi, dated July 11, 2016
NOTIFICATION
Auction for Sale (Re-issue ) of ‘7.61 per cent Government Stock, 2030'
F. No.4 (3 )-W&M/2016(i) : Government of India hereby notifies sale (reissue) of ‘7.61 per cent Government Stock,
2030’(hereinafter called 'the Stock') for an aggregate amount of Rs. 8,000 crore (nominal). The sale will be subject to
the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions
specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.
Method of Issue
2 The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as
prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price
based auction using multiple price auction method.
Allotment to Non-competitive Bidders
3. The Government Stock up to 5 % of the notified amount of the sale will be allotted to eligible individuals and
institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government
Securities (Annex).
Place and date of auction
4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on July 15, 2016.
Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-
Kuber) system on July 15, 2016. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m.
and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.
When Issued Trading
5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank
of India.
Tenure
6 The Stock will be of Fourteen year tenure commencing from May 09, 2016. The Stock will be repaid at par on
May 09, 2030.
Date of issue and payment for the stock
7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai office on July 15,
2016. The payment by successful bidders will be July 18, 2016, i.e., the date of re-issue. The payment for the Stock
will include accrued interest on the nominal value of the Stock allotted in the auction from the date of original issue
i.e., May 09, 2016 to July 17, 2016.
Interest
8. Interest at the rate of 7.61 per cent per annum will accrue on the nominal value of the Stock from the date of
original issue and will be paid half yearly on November 09 and May 09.
By Order of the President of India
(Prashant Goyal)
Joint Secretary to the Government of India